Questions tagged [rights-issue]

14 questions
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What is an Open Offer in the context of stocks and shares?

One of the companies I own shares in has just announced an Open Offer, giving me the opportunity to buy additional shares. What exactly is an Open Offer, how does it relate to a Rights Issue and how to I stand to gain from it as a private investor?…
autonomatt
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What is a "Subscription Rights Offering" of a stock one owns?

Last week a funny thing popped up in my little "play" brokerage account (where I own <100 shares of some stocks that trade below $5.00). A second line appeared below one of my stocks with a funny name and no listed value: I had no clue what this…
WakeDemons3
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What do index ETFs do when an index constituent has a rights issue?

For index-tracking ETFs, what happens when one of the index constituents has a rights issue? Do the ETFs subscribe to the rights issue, do they ignore the rights, or do they sell the rights? If they do subscribe, where do they get the cash to do so?…
Flux
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What are my rights when I wasn't invited to a shareholder meeting?

I am a shareholder (roughly 20%) and do not have board representation. The company had a shareholder meeting which I was not invited to or aware of. I got a letter in the mail stating that the meeting was held and the board of directors were re…
Pat Mulvey
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How does selling rights issues work in practice?

I read the article Understanding Rights Issues, but I don't understand how the selling of those rights issues works in practice. Do you simply get call options you can sell on an options exchange? Or is there a special exchange where such rights…
dhofstet
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Why did 3SRR go down when underlying price went down?

There is some (unexpected to me) behaviour in a stock which led to me losing quite a bit of money and I would like to understand what is happening. The stock in question is GraniteShares 3x Short Rolls-Royce Daily ETP (3SRR). My understanding and…
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How can I find out how many rights from a rights issue were exercised?

When and how can I find out how many or what percentage of rights following a rights issues were exercised. Logically it should be close to 100% as you would either sell or exercise your rights as long as they are in the money. (Barclays did a…
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Rights issue to provide temporary liquidity

I've recently invested some money in LSE:IAG. I bought on a dip and it's doing pretty well, hovering between 10-20% gains in just a few weeks. However, i've read that the company is seeking shareholder approval to do a rights issue soon with "50%…
C.Robin
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Do companies sell shares by selling treasury shares, or do they issue new ones?

Suppose a public company has 1,000,000 authorized shares, of which 400,000 have been issued. The company starts a share-buyback program and buys 100,000 shares. So there are now 100,000 shares in the treasury, and 300,000 in the public's hands.…
Flux
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Does the SEC (or any governing body) limit Rights Offerings?

Could AAPL offer all shareholders a non-transferable right to purchase two shares at a 20% discount (from today's price, exercisable for one month) for each share they own? This announcement will (almost certainly) cause the AAPL share price to…
bobuhito
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UK - Rights Issue

A company I was holding recently did a Rights Issue, giving me an extra x amount of shares in a new line from the main shares at a lower price. After reading http://www.investopedia.com/articles/stocks/05/062905.asp I decided to sit on these new…
Madden
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Anyone familiar with transfer issues?

9 Ocober made 1000€ transfer from my Business account to My Wise Bussiness account. Money never arrived . Their answer is They can not locate the money I have even sent a Bank Statement stamped and signed from the sender bank that the transfer was…
Zerni
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Rights vs Warrants vs Options

Why would a company issue rights instead of warrants (and vice versa)? Why would a trader or investor buy/sell rights instead of warrants or options (i.e. which situations make one of these more desirable than the other)?
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Is there a total number of shares distributed?

When a company makes a share available, is that a unit of a larger whole? Meaning, say, a company is worth $100 and wants to offer 50% shares. Does that mean it makes 50 shares available, at $1 per share? What happens when it wants to offer more for…
Darren rogers
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